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Growth of Indian

1 The Indian retail industry undergoes major Apparel retail

revolutions. Retailing in India is gradually industry

becoming the next boom industry. In India, CAGR

there will be the fastest growth in retailing and
real estate. The consumer buying patterns and
$115 bn
behaviour are changing steadily. The growth
of India's retail sector not only limited to urban
areas but also growing in rural areas. In the $46 bn
next five years, it is expected that, India's retail
OF RETAIL industry will expand more than 80%. 2017 2026E
The current apparel retail market worth Rs
Key Growth Drivers 2,97,091 crore (US $46 billion) and is expected
to reach Rs 7,48,398 crore (US $115 billion) by
Entry of international brands 2026
High margins, increased preference for The Indian apparel market can be broadly
branded apparel classified into mens wear, womens wear and
Changes in preferences kidswear. Currently, mens wear holds major
The fast growing economy share in the apparel market. It accounts for 41
Large young consuming population in the per cent of the total market
country In Indias high-growth, fast-changing retail
major shifts in consumer preferences apparel market, with significant new growth
Increasing disposable income opportunities for both foreign and domestic
brand awareness and increasing tech- players. As a result of it, Indian apparel
savvy millennial population industry is witnessing some specific trends
The Indian apparel market can be broadly classified into
- mens wear, Current market
- womens wear share
- Kidswear.
It is estimated that over the next decade womens wear and kids wear Men's wear
will demonstrate high CAGR of 9.9 and 10.5 per cent respectively 21%
resulting in rise in market share of these categories. 41% Women's
Both, mens wear and womens wear is expected to contribute 39 38% Kid's wear
per cent each to the total market in 2026, with kidswear accounting for
the rest 22 per cent.

A number of large, well-branded retailers make up a chunk of the apparel market, but many smaller
businesses, such as boutique and niche apparel stores, are part of the market, too.
The larger apparel retailers have an advantage over smaller shops since they get better pricing from
suppliers because they buy such large quantities of apparel. That means their profit margin is
greater and they can offer better retail pricing to their customers. Smaller apparel retailers make
up for the high pricing they pay for wholesale retail apparel by selling certain types and styles of
clothing rather than offering everything for everyone like many larger apparel stores.
The apparel industry is characterised by a number of factors which make it unique, namely:
- Short lifecycle
- High volatility
- Low predictability
- High impulse purchase